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The Kentucky Public Service Commission has approved a request by Owen Electric Cooperative Corp. to alter its rate structure to more accurately reflect the cost of serving its residential and small commercial customers.
The changes are designed to leave Owen Electric’s total revenue unchanged. Bills for individual customers will change, depending on the amount of electric consumption. The PSC ordered that the new rates be phased in over the next three years.
As a result, the monthly customer charge for residential users will increase from $11.30 to $20 in three equal steps of $2.90 spaced over the next three years. The charge will rise immediately to $14.20 and to $17.10 in 18 months with the final increase to $20.
With each increase in the monthly charge, the per-kilowatt-hour charge (a kilowatt-hour is the amount of electricity used by a 100- watt light bulb in 10 hours) will decrease by the amount needed to leave overall revenue the same if total usage remains constant. For residential customers, it will decline over three years from the current 8.81 cents per kilowatt-hour to 8.02 cents per kilowatt-hour.
Rates for small commercial customers will also follow a similar progression, with the monthly charge rising from the current $13.34 to $25 in three years.